What License Do You Need To Create A Crypto Exchange?

A Local Finance License!

Well, that was pretty direct to answer the question. But, according to the survey conducted by Decoin and PA News, about 90% of investors think that the exchanges licensed under finance regulatory are more reliable.

Crypto market is gradually evolving. Mining competition held by exchanges has completely vanished a few months ago. The crypto exchange currently seems to have entered the intermission with the occasional rights period. Recently, a survey released by the European exchange Decoin and PA News resulted in something unexpected.

The survey was conducted in a blockchain community of about 40,000 users. The effective questionnaires gathered showed that 72.7% had used the exchanges. The rest of the participants who have never used exchanges were accounted for 27.93% of the overall sum.

Also, it showed that 70.77% of participants were quite satisfied with the current exchanges, and 17.17% were not satisfied with the exchanges they have used. However, 12.06% of them were neutral.

You May Also Read: Top 5 Cryptocurrency Exchanges

Licensing: The Major Concern of All

Yes, licensing is has been found as the most concerning reason for people’s trust.

Indeed, security comes first. Then, the convenience and the extents of exchanging volume. The survey shows about 76.87% of participants are worried about the security issues of the wallets provided by exchanges. And, that they hope to use a safer platform.

Also, the participants paid attention to transaction fees, the number of exchanging pairs and the customer service.

Financial Services Agency in Japan

One of the crucial indicators that help judging the security extents of the exchange is, whether the exchange received a local finance license or not.

The survey shows that up to 90.47% of the participants are more reassured about licensed exchanges, whereas 9.53% of the participants think that it doesn’t matter.

Shay Perry analyzed that the transaction security was the primary factory and convenience was the secondary. These two factors are the primary competition strength for digital currency exchanges.

You May Also Read: Top 5 Exchanges To Buy Any Altcoins in 2019

About 60% of Major Coins Holders Own Exchange Tokens

Bitcoin is known for its market dominance yet not the wildest among the survey. According to the survey, 36.89% of participants have major altcoins (Alternative Crypto Coins) and accounted for the biggest proportion of their total assets, whereas 32.71% of them have Bitcoin accounted for the biggest proportion.

That is, 69.60% of individuals mostly hold bitcoin and the major altcoins. 15.31% of the participants hold exchange tokens as main, and 15.08% of them hold less-known altcoins.

Even, investors are more optimist about the exchange tokens. In the same survey, 59.86% of participants already have exchange tokens. 24.59% of potential investors are looking to invest in the right exchange tokens in the future. Thus, 84.45% of participants keep positive sentiment for the exchange tokens, and 15.55% never intend to hold.

At last, many users recommended the exchange to strengthen the knowledge about trading and to offer more derivatives. Generally, the market experienced great downtrend led by the falling price of Bitcoin. It has yet wiped out the investors’ positive sentiment.

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Kapil Gauhar

Kapil Gauhar is the founder of Blogger’s Gyan. He is a Passionate Blogger, a Big Thinker and a Creative Writer. His passion for doing friendship with words and letting people know about the wonders of the Digital World is what motivates him to take writing as a career.